RE:RE:Light at the end of the Tunnel Positive. Often, companies that use reverse stock splits are in distress. But if a company times the reverse stock split along with significant changes that improve operations, projected earnings and other information important to investors, the higher price may stick and could rise further. In this instance, the reverse stock split was a success for both the company and its shareholders.
Negative. If the company doesn’t successfully improve its operations along with initiating the reverse stock split, its stock price could continue to slide, sparking even more concern over the company’s fate.
Given the history of the company, a reverse split without getting their act together would be a terrible idea. I personally have not had much luck with any RS I have been part of. Tech 1 pretty much hit the nail on the head with his recent comment..........